Case Studies

Real examples of people WB Debtcare have helped with their debt:

Mrs B had in the region of £39,000 of unsecured debts which she was struggling to repay due to the high minimum monthly repayments and with no end date in sight. The client jointly owned her property with her husband. We established that the property had negative equity and as such would not be at risk by entering into a Trust Deed or Sequestration.

Following a thorough review of her circumstances it was established that Mrs B could afford to pay £260 per month to a plan. Under a Trust Deed or Sequestration it meant that she could be debt free in 48 months. Under a Debt Arrangement Scheme she would be debt free in approximately 12.5 years*. Mrs B decided to proceed with a Trust Deed and as a result will now be debt free in 48 months. She will repay a total of £12,480 into her Trust Deed.

Another example

Mr & Mrs G had in the region of £28,000 of unsecured debts. They jointly owned their property and Mr G had a motor vehicle subject to finance. Once we reviewed their circumstances we established that the property had negative equity and as such was not at risk by entering into a Trust Deed or Sequestration. After a thorough review of their budget we established that they could afford to pay a payment of £400 per month towards a plan. Under a Trust Deed or Sequestration they would pay this for 48 months and be debt free at the end.

Under a Debt Arrangement Scheme the plan would last for a period of 5.8* years. Mr & Mrs G took this into consideration and decided to proceed with a Trust Deed. They wanted to be debt free as quickly as possible to enable them to turn their disposable income and attention to the repayment of their mortgage as they approached retirement. Mr & Mrs G will therefore repay a total of £19,200 into their Trust Deeds.

A further example

Ms M had in the region of £50,000 of unsecured debts which she was able to manage until a change in employment and reduction in income. Ms M solely owned her property and had a motor vehicle worth less than £3,000 in value. After a thorough review of her financial circumstances we established that she could afford £145 per month. Under a Trust Deed it was unlikely that this payment would be accepted by her creditors.

On a Debt Arrangement Scheme it would take approximately 28.7* years to repay the debts. Ms M decided to proceed with Sequestration as it would not affect her property due to the small amount of equity or motor vehicle as it was valued less than £3,000. She will therefore repay a total of £6,960 into her Sequestration.

*Subject to using a free advice agency for the Debt Arrangement Scheme.